Market Review: 8/7/20

By Steven Doll, Portfolio Strategist

The U.S. stock market ended the week considerably higher as upbeat earnings reports, further government stimulus, and falling initial unemployment claims bolster investor confidence. U.S. small-cap stocks rose 5.4% as they begin to narrow the gap between their large-cap counterparts, which only rose 2.7%. Similarly, international developed markets begin to narrow their gap with emerging markets as they rose 2.6% on the week while emerging markets rose only 1.0%.

Interest rates moved higher this week as the economy shows early signs of a potential recovery. Having said that, the 10-year treasury yield increased from 0.55% to 0.57% and the 2-year treasury yield from 0.11% to 0.13%. However, the total U.S. bond market held steady on the week, rising 0.1%, as demand for the perceived safe assets stays strong.

The price of gold continues to rally, rising nearly 4.0% on the week and over 33.0% year-to-date, as falling interest rates, a weakening U.S. dollar, and economic concerns from the pandemic have substantially increased the demand for the haven metal.

The price of crude oil realized a modest gain of 1.7% this week, despite U.S. and China tensions as U.S. crude inventories drop.

Year-to Date Return (as of 08/07/2020)

15 views0 comments

Recent Posts

See All

You Need a Strong Core to be Financially Fit

By: Andrew J. Willms President and CEO of The Milwaukee Company The muscles that are found in the center of your body (your “core”) are responsible for keeping you stable and maintaining your balance.

The Beauty of Blockchain

By Jake Willms, Quantitative Analyst Cryptocurrency’s acceptance as a store of value has seen a dramatic increase in investing interest. The value of Bitcoin, the most popular cryptocurrency, has rise

Good Company for Your Investments™

Phone: (262) 238-6980

Fax: (262) 238-6999

414 N Main St, Thiensville, WI 53092, USA

  • YouTube
  • Spotify

©2020 by The Milwaukee Company